Punt on UK banks?

Ciprico

I know most people on here are tracker investors but anyone tempted by the recent fall in UK banks... Apart from price drop they pay nice dividends... 

wmb194

Ciprico said:

I know most people on here are tracker investors but anyone tempted by the recent fall in UK banks... Apart from price drop they pay nice dividends... 

Dividends aren't guaranteed though and if the Bank of England becomes worried enough it would ask for them to be suspended.

adindas

I have been punting with Barclay (BARC) for a few years now using my favourite strategy "enhanced" Dollar Cost averaging (DCA), as soon as they fall within range where I consider a good buy I restart my DCA generator again and stop it when it is already out of the range.

An overview, Valuation of BARC at glance:

P/E Ratio: 3.68 Dividend yield: 5.08%
Price / Book Value
Price to book - TTM: 0.33
Price to book - LFY: 0.33
Price to tangible book - MRQ 0.38
Price to tangible book - LFY 0.38

Regarding valuation of the stocks, for the Bank and Financial institution Stock P/BV is more relevant than P/E.

Here are Wall Street Analysts price targets for UK Banks from Tipsrank. It seems standard Chartered has the most upside but also the riskiest one. I personally would not touch it until I have done a full DD. It is probably why WS analysts are recommending "HOLD" at the moment.

The downside of buying UK stocks are the stamp duty that still need to be paid. So not good for trading.

This is just my personal opinion, not suggestion to buy/hold or sell.

Also US Bank such as Citi Bank, Goldman Sachs are in very attractive valuation now.

JohnWinder

Be a bit careful with verb tense.

Your blood IS moving forward around your body, as it has been and will tomorrow (god willing).

Banks aren’t paying nice dividends. They have been and might in future, but they’re not right now or on most other days of the year.

Using the present tense when the past tense is needed can mislead one’s thinking about the future.

Nonetheless, you seem to have got the market timing right with your ‘bond exit’ two years ago. But getting market timing right once is likely not enough to achieve more than ‘buy and hold’. It’s a tough gig, so ‘bon chance’.

wmb194

adindas said:

I have been punting with Barclay (BARC) for a few years now using my favourite strategy Dollar Cost averaging (DCA), as soon as they fall into the range where I consider I good buy I restart my DCA generator again.

An overview  brief Valuation of BARC:

P/E Ratio: 3.68 Dividend yield: 5.08%
Price / Book Value
Price to book - TTM: 0.33
Price to book - LFY: 0.33
Price to tangible book - MRQ 0.38
Price to tangible book - LFY 0.38

Regarding valuation of the stocks, for the Bank and Financial institution Stock P/BV is more relevant than P/E.

Here are Wall Street Analysts price target for UK Banks from Tips rank. It seems standard Chartered has the most  upside but also the riskiest one. I wpuld not touch it until I have ti,e to do a full DDs. It is probably why WS analysts are recommending "HOLD"

The downside of buying UK stocks are the stamp duty that still need to be paid. So not food for trading.

This is just my personal opinion, not suggestion to buy/hold or sell.

Also US Bank such as Citi Bank, Goldman Sachs are in very attractive valuation now.

You can avoid stamp duty on many of them if you buy their ADRs. HSBC (US:HSBC), Lloyds (US:LYG), Barclays (US:BCS) and NatWest (US:NWG*) can be bought this way but you need a broker that offers them. Obviously a downside - or upside if you want to trade after the London close - is that you can only trade them during US market hours.

*Curiously, this is listed on the Nasdaq rather than the NYSE as the others are.

adindas

wmb194 said:

adindas said:

I have been punting with Barclay (BARC) for a few years now using my favourite strategy Dollar Cost averaging (DCA), as soon as they fall into the range where I consider I good buy I restart my DCA generator again.

An overview  brief Valuation of BARC:

P/E Ratio: 3.68 Dividend yield: 5.08%
Price / Book Value
Price to book - TTM: 0.33
Price to book - LFY: 0.33
Price to tangible book - MRQ 0.38
Price to tangible book - LFY 0.38

Regarding valuation of the stocks, for the Bank and Financial institution Stock P/BV is more relevant than P/E.

Here are Wall Street Analysts price target for UK Banks from Tips rank. It seems standard Chartered has the most  upside but also the riskiest one. I wpuld not touch it until I have ti,e to do a full DDs. It is probably why WS analysts are recommending "HOLD"

The downside of buying UK stocks are the stamp duty that still need to be paid. So not food for trading.

This is just my personal opinion, not suggestion to buy/hold or sell.

Also US Bank such as Citi Bank, Goldman Sachs are in very attractive valuation now.

You can avoid stamp duty on many of them if you buy their ADRs. HSBC (US:HSBC), Lloyds (US:LYG), Barclays (US:BCS) and NatWest (US:NWG*) can be bought this way but you need a broker that offers them. Obviously a downside - or upside if you want to trade after the London close - is that you can only trade them during US market hours.

*Curiously, this is listed on the Nasdaq rather than the NYSE as the others are.

Yes I am aware about that but again if you want to have it on S&S Account you will be hit by another problem e.g exchange rate and currency fees.

coastline

Alternative is to buy a fund or IT in this case . Polar Capital Global Financials . Top holdings can be seen in the link. Current yield 3.3%

Polar Capital Global Financials Trust plc Share Price (PCFT) Ordinary Shares | PCFT (hl.co.uk)

10 year comparison with $BKX the US banking index.

Polar Capital Global Financials Trust PLC, UK:PCFT Advanced Chart - (LON) UK:PCFT, Polar Capital Global Financials Trust PLC Stock Price - BigCharts.com (marketwatch.com)

10 year with LLOY. In all cases the UK selections have underperformed.

Polar Capital Global Financials Trust PLC, UK:PCFT Advanced Chart - (LON) UK:PCFT, Polar Capital Global Financials Trust PLC Stock Price - BigCharts.com (marketwatch.com)

BARC.

Polar Capital Global Financials Trust PLC, UK:PCFT Advanced Chart - (LON) UK:PCFT, Polar Capital Global Financials Trust PLC Stock Price - BigCharts.com (marketwatch.com)

HSBA.

Polar Capital Global Financials Trust PLC, UK:PCFT Advanced Chart - (LON) UK:PCFT, Polar Capital Global Financials Trust PLC Stock Price - BigCharts.com (marketwatch.com)

wmb194

adindas said:

wmb194 said:

adindas said:

I have been punting with Barclay (BARC) for a few years now using my favourite strategy Dollar Cost averaging (DCA), as soon as they fall into the range where I consider I good buy I restart my DCA generator again.

An overview  brief Valuation of BARC:

P/E Ratio: 3.68 Dividend yield: 5.08%
Price / Book Value
Price to book - TTM: 0.33
Price to book - LFY: 0.33
Price to tangible book - MRQ 0.38
Price to tangible book - LFY 0.38

Regarding valuation of the stocks, for the Bank and Financial institution Stock P/BV is more relevant than P/E.

Here are Wall Street Analysts price target for UK Banks from Tips rank. It seems standard Chartered has the most  upside but also the riskiest one. I wpuld not touch it until I have ti,e to do a full DDs. It is probably why WS analysts are recommending "HOLD"

The downside of buying UK stocks are the stamp duty that still need to be paid. So not food for trading.

This is just my personal opinion, not suggestion to buy/hold or sell.

Also US Bank such as Citi Bank, Goldman Sachs are in very attractive valuation now.

You can avoid stamp duty on many of them if you buy their ADRs. HSBC (US:HSBC), Lloyds (US:LYG), Barclays (US:BCS) and NatWest (US:NWG*) can be bought this way but you need a broker that offers them. Obviously a downside - or upside if you want to trade after the London close - is that you can only trade them during US market hours.

*Curiously, this is listed on the Nasdaq rather than the NYSE as the others are.

Yes I am aware about that but again if you want to have it on S&S Account you will be hit by another problem e.g exchange rate and currency fees.

In that specific scenario, sure, but otherwise it's a viable way around stamp duty that people might not be aware of. If you have a broker with which you can hold a USD balance it works quite well. This is also valid for some other FTSE100 companies as well e.g., Unilever, Vodafone, WPP, BP, Shell, BAT.

Beddie

coastline said:

Alternative is to buy a fund or IT in this case . Polar Capital Global Financials . Top holdings can be seen in the link. Current yield 3.3%

Polar Capital Global Financials Trust plc Share Price (PCFT) Ordinary Shares | PCFT (hl.co.uk)

10 year comparison with $BKX the US banking index.

Polar Capital Global Financials Trust PLC, UK:PCFT Advanced Chart - (LON) UK:PCFT, Polar Capital Global Financials Trust PLC Stock Price - BigCharts.com (marketwatch.com)

10 year with LLOY. In all cases the UK selections have underperformed.

Polar Capital Global Financials Trust PLC, UK:PCFT Advanced Chart - (LON) UK:PCFT, Polar Capital Global Financials Trust PLC Stock Price - BigCharts.com (marketwatch.com)

BARC.

Polar Capital Global Financials Trust PLC, UK:PCFT Advanced Chart - (LON) UK:PCFT, Polar Capital Global Financials Trust PLC Stock Price - BigCharts.com (marketwatch.com)

HSBA.

Polar Capital Global Financials Trust PLC, UK:PCFT Advanced Chart - (LON) UK:PCFT, Polar Capital Global Financials Trust PLC Stock Price - BigCharts.com (marketwatch.com)

Very interesting, thanks for doing the research

Brie

hijack!  anyone know when the next dividend payment for Barclays is expected??  I'm thinking it will be in a couple of weeks but have nothing concrete to base that on - not sure why I can't see a date anywhere.

wmb194

Brie said:

hijack!  anyone know when the next dividend payment for Barclays is expected??  I'm thinking it will be in a couple of weeks but have nothing concrete to base that on - not sure why I can't see a date anywhere.

This must be the tenth time you've asked; 31/03/23 so this coming Friday.



https://www.dividenddata.co.uk/ex-dividend-date-search.py?searchTerm=Barc